Professional Tax - Rates, Exemption & Applicability In India

In India, there are some states where the salary slips of employees show the term professional tax. However, this professional tax does not mean that only doctors and lawyers professionals need to pay it.

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1. What is Professional Tax?

Professional tax is a direct tax which is levied on individuals earning a regular salary by the state government. This professional tax can vary based on the state you live in. Every state has different applicability of professional tax. The maximum limit that can be imposed on you is Rs. 2500. However, the amount of collected professional tax and its calculation in a state can be different from other states. This calculation of this tax is done based on the slab. Each state can have various salary slab rates for the calculation of professional tax. Andhra Pradesh, Telangana, Kerala and Tamil Nadu, Maharashtra, and Gujarat are certain states where this tax is applicable.

2. Who collects the Professional Tax?

The professional tax is collected by employers from the gross salary of their employees. Then it is paid to the applicable state government. However, Penalties can be levied on failure to collect and pay professional tax. If you are self-employed, then you can pay professional taxes to the state government by yourself. To pay the professional tax, you will be required to fill out the specified form, and a registration number will be provided to you by the state you live in. It is here to be noted down, in some states, the government also provides a refund on taxes if it is paid as a lump sum amount for a few years together, therefore it would be better to enquire about the professional tax rules in the applicable state you live in.

3. Who is Required To Pay Professional Tax?

Professional tax is not always mean that the only professional who are in the profession as doctors, lawyers or others need to pay it. This tax is also applicable to other entities or parties too. We have mentioned those applicable entities below- Companies and Business Firms 2. Limited Liability Partnerships (LLP) 3. Corporations 4. Co-op Societies and Associations 5. Hindu Undivided Family 6. Clubs 7. Lawyers and Legal practitioners 8. Contractors 9. Architects 10. Engineers 11. Insurance agents 12. Chartered Accountants (CA) 13. Company Secretary (CS) 14. Surveyors 15. Tax consultants 16. Management consultants 17. Doctors and other medical representatives. States That Levy Professional Tax? As of now, it is not mandated in every state to deduct professional tax from earning individuals. This direct tax is yet to be adopted in many states of India. Below is the list of all states who charge professional tax-

4. How to Pay Professional Tax?

The professional tax can be paid through the ways online and offline both ways. You need to go to the appropriate state’s official website for payment of professional tax. For example, if you are residing in Karnataka state, then visit the official website of https://vat.kar.nic.in/epay/ Professional tax is a direct tax which is not levied by the central government. This tax is state-to-state applicable. Therefore, the payment also varies from one state to another.

5. Procedure to Pay Professional Tax Online?

If you need to pay the professional tax online then the following are steps t for you. Make sure that you have your professional tax enrollment number ready. First, you have to go to the website of the applicable state government to pay PT. To find the website of your residing state, just search “Professional tax payment” with the city name. Probe the left-side menu to find the tab on Karnataka professional tax. Then you will be redirected to on new page where you have to choose between professional tax challan options of a registered employer and self-employed professional. Now you need to fill in your professional tax payment registration number, company name & information and details in the given columns. Later, select an option between the month and annually as per the department’s laws and rules. Thereafter, you need to enter the relevant year for which you want to make the payment of professional tax. Enter the applicable amount of professional tax and penalty if there is any. After this. Fill in your bank details to pay the amount and your registered mobile number. Press the enter and rectify your details carefully before submitting it. On the next redirected new page that shows “click here for payment” click on this and it will redirect you to your bank’s net banking page. Sign in & make the payment for the professional tax payment. Note - Keep the details of paid professional tax in pdf format for your future reference.

6. What are the Exemptions in Professional Tax?

We have come up with that any individual who is earning a regular income/salary is required to pay the professional tax, right? Though there are some individuals who are exempted from professional tax. Therefore, go through the below-stated list to know if you are required to pay PT or not. Parent of a child who is suffering from disabilities A foreigner who has been employed by the appropriate state Those people who are operating an educational institution Temporary workers who are employed in a factory A person who is suffering from a mental/physical disability such as blindness or deafness. Member of Army, Airforce, and Navy Charitable hospitals in places that come under Panchayat samiti Any Individual who is above 65 years of age

7. Professional Tax Slabs in the Different States

Let’s look at some states & Union Territories that do not levy professional tax-

Frequently Asked Questions

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What is the maximum limit of professional tax to be levied in India?

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The maximum limit that a state can levy on earning individuals is to the extent of Rs. 2500.


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Is professional tax levied on freelancers too?

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Yes. If you are a freelancer and earning an income which is more than the prescribed limit of the state you are in, then you will be required to pay the professional tax.


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When I am not required to pay the professional tax?

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There are certain conditions under which you can get exemptions in professional tax that are as follows- If you live in such as state or UT where professional tax is not applicable If your salary/income is below the defined slab rate of your state/UT If you fall under the category of exemption.


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Is it compulsory to pay professional tax?

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Yes. Paying professional tax is mandatory in case you are a salaried person. However, the amount of professional tax which you will have to pay will depend on the state you live in. The slab rates are different from state to state.


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How can I fill out the professional tax application form?

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You can simply visit the official website of your residing state to fill out the application form.


CEO Krishna Gopal

Krishna Gopal Varshney co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO